Nepalese billionaire Binod Chaudhary reiterates trust and confidence in Sri Lanka despite turbulence

6 December 2022 01:19 am Views - 228

• Subsidiary of CG Corp Global - CG Capital Partners Singapore to acquire 70.84% of Union Bank Colombo  
• Acquisition is Chaudhary’s CG Corp Global’s debut into SL’s financial industry

When Nepalese billionaire Binod Chaudhary first made a significant investment in 2001 in the iconic Taj Samudra Colombo, through a joint venture with Indian Hotels Corporation Limited (IHCL), it was in the middle of Sri Lanka’s debilitating war.  

While other investors were unwilling to consider any investment, Chaudhary saw opportunity in the war-torn country, a gesture appreciated not just by the government at the time but the industry at large. This investment was also Chaudhary’s first-ever foray into the hospitality industry, which today has a partnership with IHCL across 11 properties in six countries.

“At this moment, Sri Lanka is going through very tough times and struggling to mobilise foreign funds and investments even through the IMF,” deduces Chaudhary. 

“Banks are under tremendous pressure as are the borrowers. And yet again, despite all these economic setbacks, we have decided to take a plunge into Sri Lanka. We know it’s going to be tough but that’s the extent of confidence and our deep-rooted close ties with Sri Lanka,” he said of his investment into the eighth largest listed bank in Sri Lanka. 

Chaudhary, who has been featured on the Forbes Billionaire’s Rich List since 2013, has a long-standing friendship with Sri Lanka. The initial foray into Taj Samudra led Chaudhary to invest in 12 other properties in partnership with Jetwing Hotels Group and Ceylon Hotels Corporation. 

With the acquisition of the majority shares in Union Bank Colombo  (UBC), the group makes its maiden foray into the financial services industry in Sri Lanka. CG is also the largest shareholder in Nabil Bank, which is currently the largest bank in Nepal’s private sector, post its recent acquisition of Nepal Bangladesh Bank. 

The acquisition of 70.84 percent shares in UBC is via CG Capital Partners, a private equity company incorporated in Singapore under the umbrella of CG Corp Global. When the transaction was announced to the Colombo Stock Exchange on December 1, 2022, the bank’s share gained 13.3 percent to close at Rs.8.50.  UBC is among Sri Lanka’s 12 listed banks, with a market capitalisation of Rs.9.1 billion.